Sources familiar with the development said Reliance, which had been in talks with BP for the Belgium unit for over a year, had recently put in a formal proposal. The deal might be announced anytime, they added. However, there was no official confirmation on this from Reliance. When contacted, a Reliance spokesperson declined to comment.

The sources said Reliance chairman Mukesh Ambani would discuss the proposed acquisition of the unit with the Belgian Prime Minister Guy Verhofstadt who is currently in India on a six-day tour.

This deal will mark the first major acquisition of Reliance Industries, which generates surplus cash of over Rs 17,000 crore (Rs 170 billion) a year, in the exploration sector. Reliance's networth stands at Rs 54,000 crore (Rs 540 billion).

The Reliance board will meet tomorrow to consider raising $2 billion (nearly Rs 9,000 crore) to fund investment in oil and gas exploration and production business. The instrument for the fund raising could be foreign currency convertible bonds.

Ambani, in a recent media interview, had said the company was eyeing oil firms in the North Sea and also aimed at acquiring oil drilling and engineering firm in Africa, South America, the Middle East and India.

He said British companies working in the North Sea would become soft target with dwindling reserves in the region.